THE Bank of Tanzania (BoT) has said that the current depreciation of the shilling is a result of a strong US dollar at international level. However, the central bank says that it has no plans at the moment to intervene.....The BoT's Governor Prof Benno Ndulu said the shilling depreciation should not always be looked at with a 'bad eye" as it helps the country to export more.
Here there is a problem - we have to understand our currency depreciation is directly propotional to Inflation....Maisha yatakuwa juu mpaka..
THE Bank of Tanzania (BoT) has said that the current depreciation of the shilling is a result of a strong US dollar at international level. However, the central bank says that it has no plans at the moment to intervene.....The BoT's Governor Prof Benno Ndulu said the shilling depreciation should not always be looked at with a 'bad eye" as it helps the country to export more.
Here there is a problem - we have to understand our currency depreciation is directly propotional to Inflation....Maisha yatakuwa juu mpaka..
Sasa naona kuna haja ya kuangalia kama mtu anayetakiwa kuongoza ana uwezo na sio elimu tu.... ni wazi kwamba depreciation ya shilingi ndio inasababisha mfumuko wa bei, sasa huyu mpuuzi anakuja na upuuzi wake :disapointed:!!!!
Common sense would ask the more we 'gain' vide exports the MORE we equally pay for the imports..where is the logic?
As pointed out by Mdondoaji, why do not we see any significant changes in the kenyan and uganda shillings?
The burden of this deprication should not be neglected!!
THE Bank of Tanzania (BoT) has said that the current depreciation of the shilling is a result of a strong US dollar at international level. However, the central bank says that it has no plans at the moment to intervene.....The BoT's Governor Prof Benno Ndulu said the shilling depreciation should not always be looked at with a 'bad eye" as it helps the country to export more.
Here there is a problem - we have to understand our currency depreciation is directly propotional to Inflation....Maisha yatakuwa juu mpaka..
Hili sio tatizo la Gavana na wala asilaumiwe kwa kueleza facts za economics. First it is true if you want to have strength in your currency you need to have enough valuable exports. BUT for Tanzania we mainly export raw materials which have low price and less competitive hence we cannot bid up the price so that we can get more dollar per unit of goods sold to foreign countries. The chines and Japanese or Singapore depends more on exports of finished goods which have high value and more competitive. Hence they can decide to increase the price of their exports in dollar terms or any other foreign currency and this is the main reason why Singapore currency is strong in dollar value. Other countries like China which also have more exports of finished goods may decide to devalue their currency so as to attract more foreign markets but for Tanzania we do not decide on devaluation of our currency but it is the economic situation. Therefore, lets work hard, produce more valuable goods (especially manufacturing and other finished goods and services) for exports if we want to improve the strength of our currency and we should not put politics in every thing.
Kwahiyo unatuambia Uganda nayo wanatengeneza valuable goods? Kenya exports zao nyingi raw materials hasa agricultural goods je hizo ni valuable goods? Sisi tuna madini, ardhi, mafuta, gesi, utalii but our currency is depreciating. In my view nadhani shillingi inashuka thamani kwasababu inakosa mahitaji ya shillingi. Hilo linachangiwa na loosely policy kuruhusu dollar, pound zitumike in local transactions na kusababisha demand for our local currency to disappear. Vile vile ufisadi unaweza kuwa umechangia kwavile most of the pesa za kigeni zinapelekwa nje ya nchi na kupelekea mahitaji ya foreign currency kuwa makubwa. Mwisho kabisa kuporomoka kwa sarafu yetu kunachangiwa vile vile na upatikanaji mdogo wa foreign currencies. Hili linasababishwa na poor exports, lower tourism na mapato kiduchu katika sekta kama za madini. Haya yote yanachangia kwa namna moja au nyengine kushuka thamani ya sarafu ya Tanzania.
At last umekuja kwenye point niliyokuwa na insist. Export is the main drive in this. Kama Tanzania ina less exports don't expect tuwe na more foreign currency compared to Kenya. The Kenyan economy has a lot of exports of finished (manufactured) goods and cannot be compared to Tanzania.
nilimaanisha sheria isimpe haki mwanasiasa kuchagua gavan
Sasa naona kuna haja ya kuangalia kama mtu anayetakiwa kuongoza ana uwezo na sio elimu tu.... ni wazi kwamba depreciation ya shilingi ndio inasababisha mfumuko wa bei, sasa huyu mpuuzi anakuja na upuuzi wake :disapointed:!!!!
:.: kaka kama hujui professor ndulu bonge la economist sema tu matatizo ya kiuchumi yanatokana na siasa mbovu.... Waziri wa fedha ndiye gavana,mchumi,mhasibu mkuu wa serikali, mwalikishi wa imf, mkaguzi mkuu wa serikali, mwakilishi wa worldbank. kwa taarifa ndulu kafanya kazi kama senior economist wa worldbank. Taasisi ambayo wewe ukipata kazi mpaka upate ujauzito. He is among of genious people in this country. Make central bank independent..period!!!Nakubaliana na wewe kuwa kuna umuhimu wa kuangalia kama kweli mtu ana uwezo wa kuongoza benki yetu kuu na sio elimu tu; huyu gavana Ndullu anasema sie kuumia kwa thamani ya shillingi yetu kushuka sio jambo baya kwani linawanufaisha wale wanaopeleka vitu kuviuza nje ya nchi!! This guy is out of sync kwasababbu economy ya Tanzania ni dependent on imports na exports zetu ni kiduchu sana; hapo zamani tulikuwa tunatengeneza hata majembe lakini leo tunaagiza toka china kwahiyo inflation ya China inatuathiri sisi pia!! Ajabu ni kwamba shillingi ya Kenya inaimalika ,lakini ya Bongo ndio inazidi kudididmia, Ndullu kubali yaishe rudi Marekani ukakakae kwenye mali zako usitudanganye sisi walala hoi!!